West Virginia Record

Monday, February 17, 2020

Healthsmart of Teays Valley Inc. accuse Healthsmart LLC of fraud

By Lhalie Castillo | Jan 30, 2018

Contract 05

WINFIELD – The operators of a Healthsmart franchise allege they relied on false and/or misleading representations before entering into an agreement.

Healthsmart of Teays Valley Inc., Kimberly S. Douglas and Timothy D. Douglas filed a complaint in Putnam Circuit Court against Healthsmart LLC, Shelli Mann and Randy Mullins alleging breach of contract, unjust enrichment, fraud and other counts.

According to the complaint, the plaintiffs and defendants entered into a Healthsmart franchise agreement in May 2013 for the plaintiffs to open a franchise in Putnam County. The plaintiffs allege the defendants failed to provide services and obligations under the contract, including a failure to provide selling aids, training materials and a functioning point of sale cash register.

The plaintiffs hold Healthsmart LLC, Mann and Mullins responsible because the defendants' alleged false and misleading actions caused them to suffer damages, including the $50,000 franchise fee.

The plaintiffs request a trial by jury and seek all damages, including forfeiture of the franchise fee, royalty fees and rescission of the contract and reimbursement of all costs spent on inventory, supplies, buildout and expenses, and all further relief as the court deems appropriate. They are represented by R. Scott Long and David F. Nelson of Hendrickson & Long PLLC in Charleston.

Putnam Circuit Court case number 17-C-245

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Organizations in this Story

Hendrickson & Long, PLLCPutnam Circuit CourtHealthsmart